The holiday season is upon us, and it isn’t too late to get some cash for Christmas! While Christmas comes with excitement and time spent with loved ones, it can also come with stress. Especially if you have to make urgent home repairs, have bills to pay, or are trying to decide what gift you should buy for that special someone. Don’t worry, we have good news for you! If you have equity in your home, you may be able to get a cash out refinance, and use that cash for home improvements, debt consolidation, or a shopping spree!
What is Cash-Out Refinancing?
Cash-out refinancing allows you to take advantage of the equity you’ve built up in your home. You refinance the mortgage on your home, and also borrow against the equity you have in your home. You’ll be able to “cash out” that difference that’s left between your two mortgages (the one you have now and the new one). This extra cash will be there for you to use wherever you need it, such as paying down credit card bills, paying for Christmas presents, or making home improvements and repairs!
How Do I Know if I’m Eligible?
You’ll first want to speak with your lender to determine their minimum requirements. Some examples of requirements include a minimum credit score you need to meet, at least 20% equity in your home, and a debt-to-income ratio that’s below a certain percentage. The best way to determine your eligibility is to speak with your lender so they can inform you of their minimum requirements and if you meet these or not.
What to Do to Prepare for a Cash-Out Refinance
So, you found out your eligible, congrats! We have some tips to help you make sure you’re prepared and set up for success. First, we suggest coming up with an ideal amount you would like to receive from the cash-out refinance. What will it cost to put in that new pool? How much do you need to pay off your credit cards? Do you have a personal loan you’re ready to pay off? Whatever it is, having an idea of the amount you’d need is helpful. We suggest only cashing out what you need to pay off those bills or other expenses.
Once you’ve done this, we suggest gathering all of your financial information and organizing it into one easily accessible place. This includes income information, assets, and debt. You’ll need to know this information and provide it when applying for the cash-out refinance with your lender.
Please keep in mind that you will have to pay closing costs on the cash-out refinance, and along with this, you could end up with a very different mortgage. The terms of your new loan could be different from your current one, and you could have a higher or lower interest rate, as well as higher or lower monthly payments. Depending on your current interest rate and loan terms, you could even be in a better position after the cash-out refinanance!
Call on Team Crescenzo Today!
The best way to determine if a cash-out refinance is right for you is to give our team a call. We have all of the information you need to know, and we’re here to help guide you in the right direction. So, give us a call at 843-628-4860 today and find out if you can Cash Out for Christmas!